Nevada Administrative Code Chapter 658 - Banks: Supervision
🏛️ Overview of NAC Chapter 658
1. Supervision and Examination Fees
NAC 658.010: Mandates that, on or before June 30 of each year, the Commissioner of Financial Institutions collects a fee from each bank to cover the costs of supervision and examination. The fee is determined based on the portion of the annual budget allocated for these activities, minus other revenues collected by the Division of Financial Institutions.
NAC 658.020: Requires the Commissioner to account for the costs related to audits and examinations annually and make the results available to the public.
NAC 658.030: If the amount collected for audits and examinations exceeds or is deficient by more than $2,500, the Commissioner must adjust the assessments for the following year accordingly.
NAC 658.040: Interprets the term "financial institution" as used in NRS 658.055 to have the meaning ascribed to it in NRS 232.545.
NAC 658.050: Specifies the fees for the renewal of licenses for parent banks, branch banks, or trust offices, as well as the application fee for a new branch bank or trust office.
2. Regulatory Authority and Enforcement
NRS 658.105: Grants the Commissioner of Financial Institutions the authority to supervise and regulate banks, ensuring their compliance with applicable laws and regulations.
NRS 658.115: Allows the Commissioner to issue summary orders to enforce compliance with banking laws and regulations.
NRS 658.125: Provides a process for appeals to the State Board of Finance regarding decisions made by the Commissioner.
NRS 658.135: Requires the attestation of licenses, orders, and certificates issued by the Commissioner.
NRS 658.145: Empowers the Commissioner to offer rewards for information leading to the enforcement of banking laws.
NRS 658.151: Grants the Commissioner the power to take possession of the business and property of a depository institution under certain conditions.
NRS 658.155: Imposes penalties for neglect of duty, making false or injurious statements concerning a bank, or engaging in malfeasance or corruption in office. Violations are classified as category D felonies.
3. Additional Provisions
NRS 658.165: Prohibits officers and employees of the Division of Financial Institutions from having an interest in certain banks to prevent conflicts of interest.
NRS 658.175: Binds the State Board of Finance by limitations imposed on the Commissioner regarding the certification of new banks and the establishment of branch banks.
NRS 658.185: Enumerates incidental powers of the Commissioner to carry out the provisions of the chapter.
NRS 658.190: Authorizes the Commissioner to adopt regulations concerning nontraditional mortgage loan products and certain lending practices.
NRS 658.195: Affirms the right of banks to sue and defend in actions involving them.
NRS 658.200: Addresses regulations related to nontraditional mortgage loan products.
NRS 658.210: Requires residential mortgage loan originators acting on behalf of privately insured institutions or organizations to be licensed as mortgage loan originators.
⚖️ Relevant Case Law
While specific case law directly interpreting NAC Chapter 658 is limited, the regulations are enforced under the authority of the Nevada Revised Statutes (NRS) Chapter 658. Notably, NRS 658.570 grants the Commissioner the authority to liquidate or conserve a company, providing the same powers vested in the Commissioner by Title 55 of NRS with reference to banks.
✅ Summary
NAC Chapter 658 provides a comprehensive regulatory framework for the establishment and operation of thrift companies in Nevada. By setting standards for licensing, capital structure, permissible activities, and regulatory oversight, the chapter aims to ensure the stability and integrity of thrift companies, thereby protecting consumers and maintaining public confidence in the financial system.
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